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Adopting ESG Principles in Taiwan

In recent years, Environmental, Social, and Governance (ESG) have become increasingly important for businesses globally. ESG principles are a set of standards that evaluate a company’s environmental, social, and governance impact, which helps investors, stakeholders, and consumers assess the sustainability and ethical impact of a company’s operations and practices. Taiwan is no exception to this trend, and large companies in Taiwan should consider adopting ESG principles to stay competitive and ensure their long-term success.

One example of a large company in Taiwan that has already started to follow ESG principles is Taiwan Semiconductor Manufacturing Co. (TSMC). TSMC is the world’s largest semiconductor foundry and is committed to sustainability and reducing its environmental impact. TSMC has set ambitious targets to reduce greenhouse gas emissions, water use, and waste, and it regularly reports on its progress toward these goals. Additionally, TSMC has implemented measures to improve its governance practices, including appointing independent directors to its board and establishing an audit committee.

Another example is Hon Hai Precision Industry Co. Ltd., also known as Foxconn. Foxconn is one of the world’s largest electronics manufacturers and has also started to adopt ESG principles. Foxconn has committed to reducing its greenhouse gas emissions, implementing responsible sourcing practices, and improving labor conditions for its employees. Additionally, Foxconn has established a sustainability committee and has incorporated sustainability goals into its long-term strategic planning.

To begin following ESG principles, large companies in Taiwan should start by evaluating their current operations and practices and identifying areas where they can improve their environmental, social, and governance impact. For example, companies can conduct a sustainability audit to identify areas where they can reduce their environmental impact, such as reducing energy and water use or improving waste management. Companies can also implement measures to improve their social impact, such as improving labor conditions or supporting local communities. Finally, companies can improve their governance practices by increasing transparency, appointing independent directors to their boards, and establishing accountability mechanisms.

In conclusion, ESG principles are becoming increasingly important for businesses globally, and large companies in Taiwan should consider adopting them to stay competitive and ensure their long-term success. TSMC and Foxconn are examples of companies that have already started to follow ESG principles, and other companies in Taiwan can learn from their example. By evaluating their current operations and practices and identifying areas where they can improve their environmental, social, and governance impact, companies in Taiwan can begin to follow ESG principles and ensure their long-term success.

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